Skip to main content

Millennials Prefer Conventional Mortgages to FHA-Backed Loans

Phil Hall
Aug 09, 2017
The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications remained at the same from July into August

Millennials entering the housing market are mostly bypassing Federal Housing Administration (FHA)-backed mortgages, according to new data from Ellie Mae.
 
In an analysis of mortgage data culled during June, Ellie Mae found 63 percent of all closed loans made to Millennials were conventional loans for an average amount of $205,066, while 32 percent of closed loans were FHA loans for an average amount of $173,381. Millennials were barely found in the refi sector: 90 percent of all loans closed by Millennials in June were for purchases, with just 10 percent for refinances.
 
“Conventional and FHA loans make up the vast majority of loan types among Millennials, and tend to track in cycles,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “The numbers for June show us that, after a one-year high at 36 percent of all closed loans in February and March, FHA loans have been steadily decreasing for the past four months. Conventional loans are rising, from 60 percent in March to June’s 63 percent, indicating that, at least at the moment, Millennials are slightly more able to afford a house without government guarantees. Alternatively, this also demonstrates a potential opportunity for greater borrower education on FHA and other loan options available.”
        
Published
Aug 09, 2017
Anchor Loans Hires Andrew Jewett As SVP, Enterprise Sales

Formerly lead lending at Sundae Inc.

Industry News
Aug 02, 2021
Pretium Adds 3 Execs With Residential Credit Expertise

New Hires Will Serve As Managing Directors

Industry News
Aug 02, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021